Financial prosperity within the ICT sector also means the number of new ICT businesses is increasing.

Because the industry is rapidly developing, so are the demands for staff and offices. Because these enterprises have distinct and frequently huge requirements, the office supply industry must change in order to serve them in the long run.

ICT continues to perform well

ICT, or information and communications technology, is a broad term that encompasses both manufacturing and service industries and is primarily concerned with data processing and electronic communications. In Vietnam, the ICT sector is expanding. Revenue hit US$136 billion in 2021, up 9% from the previous year. The government has devised regulations to help the industry, which is predicted to grow at a rate of 15% per year (pa) between 2022 and 2025.

The sector's financial prosperity has resulted in an increase in the number of new ICT enterprises. According to the Ministry of Information and Communications, Viet Nam has 65,700 ICT businesses in Q1/2022, up 1,700 from Q4/2021. By the end of 2025, the number of ICT businesses is predicted to have increased by 12% per year to 100,000, nearly double what it was in 2020.

Businesses and even government organizations around the world are driving ICT demand as they undergo "digital transformations." Unsurprisingly, this has resulted in increased recruitment demands and staffing requirements for the sector. According to the HCMC Centre for Manpower Demand Forecasting and Labour Market Information, the city is expected to add 310,000 new jobs by 2022, with ICT being one of the areas driving demand.

The office market in HCMC and Ha Noi has been and will continue to be a key participant because the industry is developing in all aspects. ICT enterprises accounted for 16 percent of the leased area in Ha Noi, according to Savills' Q1/2022 market study. ICT occupiers accounted for 54 percent of newly leased premises in HCMC, significantly outnumbering distribution companies (17%) and finance, banking, and insurance industries (14%).

The criteria for ict offices

Ms Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Ha Noi, has worked with many ICT businesses in establishing, expanding, or upgrading offices. She outlined the specific requirements ICT companies have.

Technical criteria

The high-tech nature of this sector means that occupiers often come with an array of machines and electronic equipment, which means offices need to cater to very specific technical requirements.

Usually, businesses prioritise server rooms as they house the equipment that supports the entire business. As such, offices need large floor loading capacities. Offices also need electrical cabinets and generators that are large enough to maintain stable operations. As ICT enterprises consume a lot of energy, green office developments are preferred as they help minimise the impact on the environment.

Ms Hoang Nguyet Minh added: “As many ICT businesses have very specific leasing needs, Grade A offices are popular. This is as these products often come from reputable and experienced developers and investors, which creates a guarantee of quality. However, Grade B products are also popular with companies with less stringent requirements as they are more affordable.”

Expansion criteria

Offices catering to ICT businesses also need to be big enough to support expansion in the long term. Ms Hoang Nguyet Minh has seen many businesses double or triple in size in recent years. For example, the Samsung Mobile Research and Development Centre at PVI Tower has grown from 8,500 m2 to 22,000 m2 within five years.

Design and facilities

Design and facilities are also important for ICT occupiers. For example, workspaces with bright colours, glass, and flexibility promote collaboration, innovation, and creativity. As this is a sector that works on a 24/7 basis, services also need to be bespoke and cater to unique schedules. For example, at MoMo’s office at Phu My Hung Tower in HCMC, services run after conventional office hours to cater to employees.

ICT offices are more than just spaces with desks and a water cooler. They often need to be self-contained ecosystems that cater to work and life with facilities like gyms, canteens, rest and entertainment areas, and security systems. LINE's office in Ha Noi and MoMo’s office in HCMC are innovative examples in Viet Nam. The offices were carefully designed and foster efficiency, collaboration, and creativity and have unique spaces like gaming centres, lounges, sleep      pods, and rooms for mothers to care for their children.

Decentralised offices

As ICT businesses require large offices and many have expansion plans, decentralised offices are increasingly popular. In HCMC, many ICT occupiers want large offices of over 1,000 m2. As supply is limit     ed in the CBD, the non-CBD and new urban areas like Districts 2 and 7 are popular.

Commenting on the Ha Noi market, Ms Hoang Nguyet Minh shared: “Currently, office supply is abundant and is spread out throughout the city. We find that most large ICT companies, domestic and international, are concentrated in the west of the city. Compared to central areas like Hoan Kiem, offices in western districts like Cau Giay are more affordable and have larger floorplates, which is great for businesses looking to expand in the future.”